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Feb. 13 (UPI) -- President Donald Trump signed an order Thursday announcing a new reciprocal tariffs policy that could be imposed in coming weeks or months. The policy would impose tariffs at the same rate that other nations apply to U.S. exports. However, the U.S. reciprocal tariffs were not immediately imposed.
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In the tariffs memo Trump signed Thursday, Commerce Secretary Howard Lutnick and U.S. trade representative nominee Jamieson Greer are directed to consult with the Treasury and Homeland Security secretaries, as well as others in government, to come up with detailed proposals for each country affected.
The Tax Foundation's Erica York said, "Reciprocity may sound appealing. But remember who pays tariffs: It's the American importer and the burden eventually falls on the consumer. It's like shooting yourselves in the foot because someone else is shooting themselves in the foot."
Lutnick will head the studies to determine the new tariff levels for each nation affected.
At the White House Thursday, Lutnick said he expects the studies to be finished by April 1.
"Very simply it's, if they charge us, we charge them," Trump said, although specific details on how much the tariffs will be and on which specific countries and goods remained unclear.
Press secretary Karoline Leavitt said during a briefing Wednesday that the reciprocal tariffs are something that Trump "believes strongly in."
The announcement came as Indian Prime Minister Narendra Modi met with Trump during a Thursday White House visit to avoid added tariffs and the trade war they could cause with the United States.
He was expected to discuss cutting Indian tariffs on some American products in a bid to begin addressing the $45.7 billion U.S.-India trade deficit.
On Feb. 2, Trump acknowledged that the tariffs he's imposing along with the trade wars they are igniting could bring "some pain" for Americans, but he claimed the results will be "spectacular."
According to the National Retail Federation, the Trump tariffs will cost U.S. households up to an estimated $7,600 per year.
Tariffs against U.S. allies and major trading partners has created trade uncertainty as economists predict higher inflation from the new tariffs.
On Friday, the University of Michigan Surveys of Consumers found U.S. consumer sentiment falling "in part due to a perception that it may be too late to avoid the negative impact of tariff policy."
Wednesday Japan formally requested exemption from the Trump 25% tariffs on steel and aluminum.
If the tariffs on Canada, Mexico and China Trump threatens to impose on March 1 go into effect the Petersen Institute for International Economics says it would cost the typical U.S. household over $1200 a year.
